Long Term Incentive - Salary Review

[pwc_94]

Hello everyone,

I am currently configuring the Compensation module for a client who would like to manage a potential Long Term Incentive within the Salary Review worksheet. The Long Term Incentive is monetary and not unit-based, as it represents a bonus that could be allocated differently to employees along their growth path (with different effective dates for each person).

Considering this requirement, I thought about adapting the Stock worksheet to see if it could meet this need. Has anyone ever done something similar? Are there any specific guidelines or considerations (aside from the limitation of the budget being unit-based and not monetary)?

Do you have any suggestions on how to assess whether this specific application of the worksheet is feasible?

Thank you

[xavierlegarrec]

Hi @pwc_94 

If the customer wants to reflect the different assignments (and salary or target bonus % changes) an employee had during the year in the calculation of the bonus payout then there is no other choice in SuccessFactors but to use Variable Pay.

Salary Review or Stock tabs can be repurposed of course but they can only retrieve data from EC as of one effective date. So your customer would have to accept to pay everybody's bonus using the 12/31 Salary and Target Bonus % (which means they would be more generous than they legally should because all people who got promoted towards the end of the year would receive a much higher payout than they should).

Usually we try to use Variable Pay for everything bonus related.

All the best

Xavier